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Product Profitability Analysis Galaxy Sports Inc, manufactures and sells two styles of All Terrain Vehicles (ATVs), the Conquistador and Hurricane, from a single manufacturing facility,

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Product Profitability Analysis Galaxy Sports Inc, manufactures and sells two styles of All Terrain Vehicles (ATVs), the Conquistador and Hurricane, from a single manufacturing facility, The manufocturing focility operates at 100% of capacity. The following per-unit information is available for the two products: In addition, the following saies unit volume information for the period is as follows: a. Prepare a contribution margin by product report. Compute the contribution margin ratio for each product as a whole percent. Galaxy Sports Inc. Contribution Margin by Product Than cos was To recatt the contribution margin data by product report, multiply the sales volume by each per unit amount. To calculate the contribution margin ratio, divide the contribution margin by sales. b. What advice would you give to the management of Galaxy Sports Inc, regarding the profitabilty of the two products? The line provides the largest total contribution margin and the largest contribution margin retio, If the sales mix ware shifted more toward the line, the overall profitability of the company would increase

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